Falling behind on filing your taxes can be scary, filled with questions and doubt about how to make it right with the IRS. Fortunately, there are steps that can be taken to satisfy the IRS and get you back into the system. Here are 10 things you should know about getting current with your unfiled [...]
Unfiled returns
IRS audits can leave your stomach in a knot and your head in your hands, often because you feel innocent of the changes the IRS is proposing to your tax return. Notice I said proposing. An IRS audit is not simultaneously the beginning and end of your defense, with the auditor playing the role of [...]
As a general rule, count on IRS interest and penalties doubling the amount you owe every five years. Interest is only part of the cause; it is the penalties that really hurt. Interest rates charged by the IRS are not unfair – the federal short-term rate plus 3%. This has left IRS interest hovering [...]
If you owe the IRS and have a refund on your tax return, the IRS will keep the refund and apply it to your unpaid taxes. The problem is not repaying the debt – you would if you could – but that you simply cannot afford to lose the refund. The refund is needed to [...]
Bankruptcy is a powerful tool in solving IRS problems – but can it stop the IRS from auditing you? A centerpiece of bankruptcy law is the concept of an “automatic stay.” The automatic stay stops creditors from calling and writing to enforce or collect a debt from you. The “stay” on your creditors – including the IRS [...]
“I know I filed it, but the IRS tells me they never received it.” Tax returns – lost. Collection appeals – misplaced. Innocent spouse claims – never processed. The reality is that the IRS does lose incoming mail. It is the exception, not the rule, but it happens. And when it happens, it can be [...]
